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Business and marketing (AMA Computer
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FABM WEEK 11-19
It highlights computations that allow the reader to understand how the company
performs and positions itself financially.
Select
one: a.
Vertical Analysis
b.
Horizontal Analysis
c.
Ratio Analysis
d.
None of the choices
Posting is the step in the accounting
process. Select one:
a.
3rd
b.
2nd
c.
4th
d.
1st
Internal and external users depend on the in order to make sound
decisions for the business.
Select
one: a.
Net Loss
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b.
Net
Profit
c.
Financial
statements
d.
Investment
s
What should be done first?
Select one:
a.
Foot the accounts
b.
Prepare the trial balance
c.
Prepare the unadjusted trial balance
d.
Take the difference between the totals of the debits and credits.
Which is written first?
Select one:
a.
Either A or B
b.
Account to be debited
c.
Account to be credited
d.
No order is followed
Debit is on which side of the
ledger? Select one:
a.
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Bottom
b
.
Right
c.
Center
d.
Left
This type of analytical technique is considered
"static". Select one:
a.
All of the choices
b.
Vertical Analysis
c.
Ratio Analysis
d.
Horizontal Analysis
book of orignial
1. All transactions are initially recorded in this document.
en
Answer
Asset
2. Equities (Liability + Equity) = Answer
Journalizing
3. Answer is the second step in the accounting cycle.
journal
4. It is the book of original entry. Answer
debit
5. Answer in liabilities is an account to be credited.
debit
6. Answer is on the left side of the T-account.
refer
7. Folio is also known as the Answer or DR.
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5
8. How many columns does a General Journal have? Answer
Equit
9. Answer comprises the claims of the owners on the assets of the
y
firm after
deducting the claims of the creditors, known as their liabilities.
credited
10. Are increase in asset debited or credited? Answer
Another term for foot is :
Select one:
a.
Net
b.
Gross
c.
Sum
d
.
Total
is the comparison of a company's financial statements from
one period to another.
Select
one: a.
Ratio Analysis
b.
Analytical techniques
c.
Horizontal Analysis
d.
Vertical Analysis
The normal balance of accounts receivable is credit.
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Select
one:
True
False
General journal is the book where transactions are recorded? What book do we
use to post the transactions?
Select
one: a.
balance sheet
b.
General ledger
c.
trial balance
d.
Workshe
et
What do you call the process of getting the difference between the totals of the
debits and credits?
Select
one:
a.
summin
g
b.
Debitin
g
c.
crediting
d.
Footin
g
Journalizing is the step in the accounting
cycle. Select one:
a.
2nd
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b.
1st
c.
3rd
d.
Last
The following accounts have a debit normal balance except:
Select
one: a.
service income
b.
Land
c.
Accounts receivable
d.
Building
Vertical analysis is also known as static analysis as it only looks at financial
statement information one period at a time.
Select
one:
True
False
These are used to asses' financial
information. Select one:
a.
Financial information
b.
Financial statement
c.
All of the choices
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d.
Analytical techniques
When office supplies are purchased on credit, a liability account is
increase~ Select one:
True
Fals
e
To know if the company is capable to pay its expenses when it becomes due.
Select
one: a.
stability
b.
profitabilit
y
c.
growt
h
d.
liquidity
Financial statements are used by the investment community, lenders, creditors,
and management to evaluate an entity.
Select
one:
True
False
is done after analyzing the business transaction.
Select
one: a.
Writing in the General Ledger
b.
Preparing financial statements
c.
Preparing an Income statement
d.
Journalizing
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Ratio analysis is the method of financial evaluation that interprets the
relationship among the different accounts found in the financial statements. is
the method of financial evaluation that interprets the relationship among the
different accounts found in the financial statements.
Select
one:
True
False
The balance of Liability, Equity, or Income Account increases when the amount is
entered in
the credit or Right Side Column.
Select
one:
True
False
Bank statement shares the same content with:
Select
one: a.
Passbook
b.
Income
Statement
c.
Financial
Statement
d.
Statement of Financial Position
Debit is on which side of the
ledger?
Select
one: a.
Left
b.
Center
c
.
Righ
t
d.
Botto
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m
The entry to record the 1 month expired portion of the insurance paid in advance
is?
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Select one:
a.
dr insurance expense cr prepaid insurance
b.
dr prepaid insurance cr cash
c.
dr cash cr insurance
Check is also a form of cash because .
Select
one: a.
They share the same function
b.
It is mandated by law
c.
All of the choices
d.
Can be deposited and encashed
The entry to record the advance collection of service revenue is?
Select
one: a.
dr unearned service revenue cr cash
b.
dr cash cr unearned service revenue
c.
dr unearned service revenue cr service revenue
A general ledger contains a page number, columns for the date, explanation,
folio, debit and credit.
Select
one:
True
False
Decrease in liabilities falls under:
Select
one: a.
None of the choices
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b.
Accounts debited
c.
Accounts credited
d.
Equities
It is done after analyzing the business transaction.
Select
one: a.
Preparing financial statements
b.
Preparing an Income statement
c.
Journalizing
d.
Writing in the General Ledger
To effect increase in equity we credit capital and post to what side of the ledger?
Select
one: a.
Right
b.
Middle
c.
left
The page number of the journal in which the information was taken from is
placed in the folio of the ledger. The page number of the ledger where the
information was posted is placed in the folio of the trial balance.
Select
one: a.
Both statements are false
b.
The 1st statement is true. The 2nd statement is false.
c.
Both statements are true
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d.
The 1st statement is false. The 2nd statement is true.
To apply the concepts of Vertical and Horizontal analysis on the given financial
data. Horizontal analysis confines itself in a period of time and compares its
components with a base item in the financial statement.
Select
one: a.
Vertical Analysis
b.
Ratio Analysis
c.
All of the choices
d.
Horizontal Analysis
A journal is the book of final entry.
Select
one:
True
False
To total is to .
Select
one: a.
Gross
b.
Summarize
c.
Foot
d.
Net
To apply the concepts of Vertical and Horizontal analysis on the given financial
data.
makes use of common size financial statements to
convert each financial statement item to its base year.
Select
one: a.
Both B and C
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b.
Vertical Analysis
c.
Ratio Analysis
d.
Horizontal Analysis
The following are the common types of transactions that may conduct in the bank
except:
Select
one: a.
Deposit
b.
Withdrawal
c.
Both B and C
d.
Investing
Decrease in liabilities falls under:
Select
one: a.
Equities
b.
Accounts debited
c.
None of the choices
d.
Accounts credited
To record the purchase of office equipment for cash, we debit cash and credit
office equipment.
Select
one:
True
False
What is the ratio to test ability to meet sudden & immediate demands on current
assets?
Select one:
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a.
current assets/current liabilities
b.
Working capital/total assets
c.
quick assets/current liabilities
d.
Current assets-current liabilities
Credit is on the side of the T-account.
Select
one: a.
Right
b.
Bottom
c.
Left
d.
Center
Checking account is also known as:
Select
one: a.
Deposit account
b.
None of the choices
c.
Current account.
d.
Savings account
The financial analysis is the comparison of a company's financial statements
from one period to another.
Select
one: a.
Ratio
analysis
b.
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vertical analysis
c.
none of the choices
d.
Horizontal analysis
What is the accounting equation?
Select
one: a.
Asset
b
.
Asse
t
c.
None of the choices
d
.
Asse
t
e.
Liability + Equity + Income - Expense
f.
Equities (Liability - Equity)
g.
Liability - Equity
It is considered as the key in the preparation of financial statements.
Select
one: a.
Trial balance
b.
General Journal
c.
Balance Sheet
d.
General Ledger
pre-numbered to ensure that they can easily be accounted for and
what is lost can easily be identified.
Select one:
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a.
Cash
b.
Bank Statement
c.
Withdrawal and Deposit Slips
d.
Check
s
Aside from equity, what other account also has a normal credit balance?
Select
one: a.
Unearned revenue
b.
Repair tools
c.
machineri
es
What is true about Ratio analysis?
Select
one: a.
It highlights computations that allow the reader to understand how the company
performs and positions itself financially.
b.
It is the method of financial evaluation that interprets the relationship among the
different accounts found in the financial statements.
c.
The most widely used basis of fully understanding a company's financial
statements
d.
All of the choices
Freight in is included as part of the total cost of inventory purchased.
Select
one:
True
False
It is an internal control tool that helps the company identify and check for
irregularities in
their cash in bank.
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Select one:
a.
None of the choices
b.
Bank reconciliation
c.
Bank statement
d.
Income Statement
Income from a merchandising business is entered in the journal entries as
revenues.
Select
one:
True
False
The bank on the other hand keeps record of the depositor's transactions in a .
Select
one: a.
Savings Account
b.
Current Account
c.
Deposit Account
d.
Cash in a Bank Account
The depositor keeps record of bank transactions in a
Select
one: a.
Deposit Account
b.
Saving Account
c.
Current Account
d.
Cash in a Bank Account
Freight in refers to costs incurred in transporting inventory that are sold.
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Select
one:
True
False
A merchandising business uses periodic inventory system for their sales and
purchases.
Select
one:
True
False
The balances shown in the bank statement and in the accounting records are
.
Select
one: a.
Unadjusted and uncorrected
b.
Adjusted and uncorrected
c.
Adjusted and corrected
d.
Unadjusted and corrected
Other miscellaneous bank charges like fees for printing checks, handling
collections of notes receivable, and processing NSF checks falls under .
Select
one: a.
Charges for NSF check
b.
Outstanding checks
c.
Service chargers
d.
Deposits in transit
FOB destination retains the ownership with the seller until the goods reach the
destination.
Select
one:
True
False
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A type of tax system wherein the government imposes higher taxes on higher
earnings.
Select
one: a.
Proportionate
b.
Progressive
c.
Regressiv
e
d.
None of the choices
Service business have tangible products.
Select
one:
True
False
The balances between the Cash in Bank and the Current Account-Depositor
accounts are
always
Select
one: a.
Either A or C
b
.
Equa
l
c.
Undetermined
d.
Unequal
These are taxes on property.
Select
one: a.
Output Tax
b.
Excise
Tax
c.
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Input Tax
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d.
Percentage Tax
Purchases, unlike sales, does not have discounts.
Select
one:
True
False
The most common tax rate system is .
Select
one: a.
Proportionate
b.
Progressive
c.
All of the choices
d.
Regressiv
e
These are adjustments in the unadjusted bank balance.
Select
one: a.
Deposits and Outstanding checks
b.
Credit and Debit Memoranda
c.
None of the choices
d.
All of the choices
The depositor will keep .
Select
one: a.
Both A and B
b.
None of the
choices c.
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Liability
d.
An asset
FOB shipping point means that if the good is lost or damaged while in transit, such
shall be borne by the buyer.
Select
one:
True
False
These are taxes imposed on the earnings of businesses deriving income in the
country.
Select
one: a.
Excise Tax
b.
Business Tax
c.
Percentage Tax
d.
Value-Added Tax
VAT in the Philippines is set to how many percent?
Select
one: a.
7
b.
15
c.
12
d.
10
Credit is the normal balance of purchases.
Select
one:
True
False
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Other miscellaneous bank charges like fees for printing checks, handling
collections of notes receivable, and processing NSF checks falls under .
Select
one: a.
Outstanding checks
b.
Deposits in transit
c.
Charges for NSF check
d.
Service chargers
These are imposed on the privilege to sell products and services.
Select
one: a.
Excise Tax
b.
Percentage tax
c.
Business Tax
d.
Value-Added Tax
Freight out is included in the cost of goods.
Select
one:
True
False
Estate tax falls .
Select
one: a.
Income Tax
b.
Transfer Tax
c.
None of the choices
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d.
Business Tax
The balances shown in the bank statement and in the accounting records are:
Select
one: a.
Unadjusted and uncorrected
b.
Adjusted and uncorrected
c.
Unadjusted and corrected
d.
Adjusted and corrected
These are applied only on certain businesses and transactions
Select
one: a.
Business Tax
b.
Value-Added Tax
c.
Excise
Tax
d.
Percentage Tax
In a proportionate tax system, when an individual earns more, the taxable income
.
Select
one: a.
Decreases
b.
Increases
c
.
Sam
e
d.
Depending on the situation
These are taxes imposed on specified goods manufactured or produced in the
Philippines.
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Select
one:
a.
Percentage
Tax
b.
Value-Added
Tax
c.
Business
Tax
d.
Excise
Tax
Debit is on which side of the ledger?
Select
one: a.
Left
b.
Right
c.
Bottom
d.
Cente
r
To enumerate the different categories of financial information. There are
main categories of financial information.
Select
one: a.
3
b.
2
c.
5
d.
7
Comprises the claims of the owners on the assets of the firm after deducting the
claims of the creditors.
Select
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one: a.
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Liability
b
.
Asse
t
c.
Equit
y
d.
Expense
The General Ledger is known for:
Select
one: a.
Consolidating daily transactions into different individual account titles.
b.
Used in journalizing
c.
"Book of original entry"
d.
All of the choices
What should be done first?
Select
one: a.
Foot the accounts
b.
Prepare the unadjusted trial balance
c.
Prepare the trial balance
d.
Take the difference between the totals of the debits and
credits. Increase in asset is considered as:
Select
one: a.
Equities
b.
Account
Credited c.
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None of the choices
d.
Account Debited
What is the accounting equation?
Select
one: a.
Liability - Equity
b.
None of the choices
c.
Equities (Liability - Equity)
d.
Liability + Equity + Income - Expense
e
.
Asse
t
f
.
Asse
t
g
.
Asse
t
highlights computations that allow the reader to understand how the
company performs and positions itself financially.
Select
one: a.
Vertical Analysis
b.
Ratio Analysis
c.
Horizontal Analysis
d.
All of the choices
is used to interpret the relationship among the different accounts
found in the financial statements.
Select
one: a.
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All of the choices
b.
Horizontal Analysis
c.
Vertical Analysis
d.
Ratio Analysis
To differentiate the different techniques of financial analysis. Analysis based on
the changes on the amounts from one period to another are usually expressed
.
Select
one: a.
Either absolute numbers or percentages
b.
Neither absolute nor percentages
c.
Both absolute numbers and percentages
d.
Only in absolute numbers but not in percentages
The page number of the ledger where the information was posted is placed in
what column of the journal?
Select
one: a.
Date
b.
Credi
t
c
.
Folio
d
.
Debi
t
Credit is the normal balance of the office supplies, rent expense and drawing
accounts.
Select
one:
True
False
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This is where we write the page number of the journal in which the information is
taken from.
Select
one: a.
Folio
b.
Explanation
c.
Date
d.
Account No.
What is true about the general journal?
Select
one: a.
Book of original entry
b.
Used in journalizing
c.
Contains 5 columns
d.
All of the choices
It shows the fair measure of assets, liabilities and owner's equity.
Select
one: a.
None of the choices
b.
Unadjusted Trial Balance
c.
Adjusting Entries
d.
Postin
g
What is the accounting equation?
Select
one: a.
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Liability + Equity + Income - Expense
b.
Equities (Liability - Equity)
c
.
Asse
t
d
.
Asse
t
e.
Liability - Equity
f.
None of the choices
g
.
Asse
t
It means how quickly you can get your hands on your cash.
Select one:
a.
profitabilit
y
b.
growt
h
c.
Liquidit
y
d.
Stability
The liability account will increase if a credit to this account is posted as credit also
to the general ledger.
Select
one: a.
Office supplies
b.
Accounts payable
c.
prepaid insurance
d
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.
cash
Analysis based on the changes on the amounts from one period to another.
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Select one:
a.
Ratio analysis
b.
none of the choices
c.
Horizontal analysis
d.
vertical analysis
It is a booklet that shows you the details of your bank transactions.
Select
one: a.
Ledger
b.
Chec
k
c.
Passbook
d.
Journa
l
Increase in asset is considered as:
Select
one: a.
None of the choices
b.
Account Debited
c.
Equities
d.
Account Credited
The entry to record the advance collection of service revenue is?
Select
one: a.
dr unearned service revenue cr
cash b.
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dr unearned service revenue cr service revenue
c.
dr cash cr unearned service revenue
What is needed to be able to prepare financial statements?
Select
one: a.
Trial Balance
b.
Journal
c.
Ledger
d.
Statement of Income
Aside from equity, what other account also has a normal credit balance?
Select one:
a.
machineri
es
b.
Repair tools
c.
Unearned revenue
Posting is the step in the accounting process.
Select
one: a.
4th
b.
3rd
c.
2nd
d.
1st
These are used to asses' financial information.
Select
one: a.
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Analytical techniques
b.
All of the choices
c.
Financial statement
d.
Financial information
An analysis which compares the components of the base item for a particular
period of time.
Select
one: a.
Ratio
b.
horizontal
c.
none of the choices
d.
Vertic
al
It contains accounts transferred from the general journal.
Select
one: a.
trial balance
b.
General ledger
c.
workshe
et
d.
Balance sheet
Comprises the claims of the owners on the assets of the firm after deducting the
claims of the creditors.
Select
one: a.
Expens
e b.
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Asset
c.
Equit
y
d.
Liabilit
y
In preparing the trial balance, the account should be arranged according to .
Select
one: a.
Liquidity
b.
None of the choices
c.
Stability
d.
Profitability
These are receipts by the depositor that reached the bank too late to appear in the
bank statement for the current month.
Select
one: a.
None of the Above
b.
Service Charges
c.
Outstanding Checks
d.
Deposits in transit
These are adjustments in the unadjusted book balance.
Select
one: a.
Service Charges
b.
Outstanding checks
c.
Credit and Debit memoranda
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d.
Deposits in transit
It helps to determine transactions that must be recorded to update or correct the
depositor's accounting records and to determine the actual amount of the cash
deposit balance at the end of the month.
Select
one: a.
Financial Report
b.
Bank Statement
c.
Bank Reconciliation Statement
d.
Financial Statement
A manufacturing business does not need to alter completely the materials they
purchased before selling it to the public.
Select
one:
True
False
The balances between the Cash in Bank and the Current Account-Depositor
accounts
.
Select
one: a.
Seldom equal
b
.
Equa
l
c.
Undetermined
d.
Unequal
A merchandising business needs to alter completely the materials they purchased
before selling it to the public.
Select
one:
True
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False
The bank on the other hand keeps record of the depositor's transactions in a .
Select
one: a.
Deposit Account
b.
Cash in a Bank Account
c.
Savings Account
d.
Current Account
When should depositors prepare a bank reconciliation?
Select
one: a.
Everyda
y
b.
Every
month
c.
Anytime
d.
Every
year
Inventory is a tangible product.
Select
one:
True
False
A merchandising business has two different systems in accounting for their sales
and
purchases.
Select
one:
True
False
These are adjustments in the unadjusted book balance.
Select one:
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a.
Service Charges
b.
Credit and Debit memoranda
c.
Deposits in transit
d.
Outstanding checks
Freight in refers to costs incurred in transporting inventory that are sold.
Select
one:
True
False
FOB shipping point means that if the good is lost or damaged while in transit, such
shall be
borne by the buyer.
Select
one:
True
False
The balances shown in the bank statement and in the accounting records are
.
Select
one: a.
Unadjusted and uncorrected
b.
Adjusted and corrected
c.
Unadjusted and corrected
d.
Adjusted and uncorrected
These are imposed on the privilege to sell products and services.
Select
one: a.
Value-Added
Tax b.
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Excise
Tax
c.
Luxury
Tax
d.
Percentage Tax
The depositor will record bank transactions in a .
Select
one: a.
Current account
b.
Deposit account
c.
Cash in a bank account
d.
Savings account
These are receipts by the depositor that reached the bank too late to appear in the
bank statement for the current month.
Select
one: a.
Deposits in transit
b.
Outstanding Checks
c.
None of the Above
d.
Service Charges
The balances between the Cash in Bank and the Current Account-Depositor
accounts
.
Select
one: a.
Unequal
b.
Undetermine
d c.
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Equal
d.
Seldom equal
These are imposed on properties or rights transferred by one entity to another
entity.
Select
one: a.
Sin Tax
b.
Business Tax
c.
Income Tax
d.
Transfer Tax
Tax imposed on the privilege to sell products and services are called
Select
one: a.
Luxury Tax
b.
Sin Tax
c.
Value-Added Tax
d.
Percentage Tax
Dealers of cars, retail shops, and sari-sari stores are examples of manufacturing
business.
Select
one:
True
False
In a proportionate tax system, when an individual earns more, the taxable income
.
Select
one: a.
Increases
b
.
Sam
e
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c.
Depending on the
situation
d.
Decreases
This kind of tax system is the easiest to compute.
Select
one: a.
Income Tax
b.
Regressive Tax
c.
Progressive Tax
d.
Proportionate Tax
This account shows the cash balance at the beginning of the month, cash
receipts and deposits (debits), cash payments and withdrawals (credits), and the
new balance at the end of the month.
Select
one: a.
Savings Account
b.
Deposit Account
c.
Cash in a Bank
d.
Current Account
The government agency assigned to collect taxes from the people.
Select
one: a.
DBM
b.
BoC
c.
SEC
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d.
BIR
Freight refers to costs incurred for transportation.
Select
one:
True
False
Who should prepare a bank reconciliation?
Select
one: a.
Neither A nor B
b.
Bank
c.
Deposito
r
d.
Both A and B
It is the most common business tax in the country.
Select
one: a.
Percentage Tax
b.
Donor's Tax
c.
Excise
Tax
d.
Value-Added Tax
Purchase discounts are present on goods purchased on credit account.
Select
one:
True
False
Credit is the normal balance of purchases.
Select one:
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True
Fals
e
CREATED BY: SOUICHI CUTIE PIE
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